Sudan’s financial problems would be solved, if the gold produced in Sudan was not sold but used as a guarantee for financing, according to Minister of Minerals Hashem Ali Salem.
During the weekly News Forum at the Ministry of Information in Khartoum last week, the Sudanese Minister of Minerals announced that the gold production has increased to more than 100 tons during the current year.
The Minister reported, that Khartoum received a financing offer of more than $6 billion from four large mining companies, to be guaranteed by gold produced in the near future. However, he said, only $4 billion would be enough to solve the country’s economic problems.
Had the Central Bank of Sudan purchased gold for a reasonable price, miners would not have smuggled the precious mineral, Salem stated, and stressed the necessity to establish a gold bourse.
He further pointed out that his Ministry accounts for five per cent of the national domestic product. He hopes to increase this figure in 2018, when the Ministry will stop exporting a number of raw minerals in 2018, and start the indigenisation of the minerals production industry.
In March this year, the Central Bank of Sudan and the Ministry of Minerals announced new policies to buy and export gold. The new policies allow the private sector to export 50 per cent of gold it buys, and sell the other half to the Bank.
According to a recent report by the Sudan Democracy First Group (SDFG), the country’s gold industry is affected by “bureaucratic and political corruption, including embezzlement, cronyism and patronage.”